US: BorgWarner outlook down despite Q2 profit record
BorgWarner said second quarter net earnings, up 21% to US$1.00 per share, or $1.36 excluding special items, was a new record. Net sales were up 10% to $1,856m.
Operating income was $193m, including a $38m pre-tax charge related to the loss from disposal activities.
Weakening global economic conditions has prompted BW to revise down fll year sales and profit estaimates. Annual net sales growth is now expected to be 4% to 6%, down from 10% to 12% previously.
Net earnings are now expected to be within a range of $5.05 to $5.25 per share, down from $5.35 to $5.65.
"Our outlook for Europe and for commercial vehicle markets around the world has been negatively impacted by the general slowdown in the global economy," it said, adding that record earnings were still expected.